October 2024
📄 Employee Pay
No changes to NICs, VAT, or Income Tax for employees. The frozen IT thresholds by the previous government to end by 2028/29, with thresholds uplifted with inflation.
🏢 Employer NICs
Employer NICs to rise by 1.2% to 15% in April 2025, with the secondary threshold cut from £9,100 to £5,000. Employment Allowance increases from £5,000 to £10,500.
📈 Capital Gains Tax
- Lower rate to rise from 10% to 18%, higher rate from 20% to 24%.
- Residential property rates maintained at 18%-24%.
- Business Asset Disposal Relief (BADR) at 10%, rising to 14% (April 2025) and 18% (April 2026). Lifetime limit of £1 million to remain.
🏠 Inheritance Tax (IHT)
- Nil rate band freeze extended until 2030 (£325,000, uplifted to £500,000 where main residence left to descendants)
- IHT on inherited pensions introduced.
- Full 100% BPR/APR restricted to £1 million, with excess reduced to 50%.
🏢 Corporate Tax (CT)
- Corporation Tax remains the same.
- Full expensing and Annual Investment Allowance maintained.
- R&D rates unchanged.
🏠 Second Home Surcharge
- SDLT surcharge on second homes increased to 5%, effective immediately.
🎓 VAT on Private School Fees
- Introduced from January 2025 (as expected)
🌍 Non-Dom Tax Status
- Abolished from April 2025, to be replaced with a residence-based system.
Author - Shoaib Khan